Due to the presence of African swine fever (ASF) in Vietnam, this country could suffer a deficit of some 500,000 tonnes of pork: almost 20% of the demand in the period that goes from July 2019 to early 2020, according to the information provided by Viet Nam News, that echoes a report by the consulting firm Ipsos Business Consulting, gathered by the ICEX.
The recent spreading of ASF over almost all Vietnam has entailed the culling of more than 3 million pigs, according to the latest information provided by the Ministry of Agriculture of Vietnam. The lack of an inventory to tackle the market needs, and specially the worries of the consumers regarding the food safety of the local products have made the demand for branded goods with a greater quality an a guaranteed traceability, as well as the imports of pork from the USA, Canada, Spain, Germany, Poland and France increase in the last four months.
Spain, Germany, Poland and France increase in the last four months.
Vietnam is the greatest consumer of pork per capita in Southeast Asia, with some 31.3 kg per person and year, and a total annual consumption that exceeds three million tonnes. Thanks to this, Vietnam is the fifth greatest market in the world and has developed an important local industry that covers more than 80% of the domestic consumption, but nevertheless it still offers a not very competitive product in an area in which the decisive factor when deciding to buy is the price.
This situation and the existence of business opportunities for foreign companies has favoured the growth of the Spanish exports in the last years, and this has allowed Spain to become one of the main foreign suppliers, with a market share of approximately 7%.
According to the information provided by the ICEX's databases, the Spanish sales of pork to Vietnam represented, in 2018, some €11.2 million, more than 30% above the figures reached in 2017.
The figures regarding the first four months of 2019, that already offer official statistics, equally reflect a growth that exceeds 30%, and that has been specially important in the case of the products included under the TARIC heading as “frozen edible offal”, for which the increase in sales versus the same period in 2018 has almost reached 60% by adding up nearly €2 million.
Thursday, July 11th, 2019/ ICEX/ Spain.